Email Marketing Case Study: Klaviyo Abandoned Cart Sequence recovers $15,300 in two weeks ($18,584 total!)

Email Marketing Case Study: Klaviyo Abandoned Cart Sequence recovers $15,300 in two weeks ($18,584 total!)

Email Marketing Is Not Dead

Low Gravity Solutions (LGS) was hired to start the email marketing program for one of the largest [musical] drum sellers and distributors in the U.S. They have a thriving retail location, tons of website traffic and sales, and are integrated with other 3rd party marketplaces. Despite all of this, they had no formal email marketing plan except for an abandoned cart email. In this 2-week case study, you’re going to see how we switched email platforms to Klaviyo and:

  • recovered $15,300 in lost revenue with a single abandoned cart sequence
  • increased the recovery rate from 1% to a mind-blowing 11.8% for some emails (8% on average)
  • added an additional $3,000 of income by using the abandoned browser sequence
  • our methodology and plans for the future.

You can see that even though you’re doing almost everything right, things can still get drastically better when you put your trust in the right hands.

Klaviyo flow overview

Email Marketing Before Low Gravity Solutions

This client knows the power and value of collecting email addresses and had been doing it for multiple years. They were using MailChimp and even had a few segmentations in their audience for better targeting. However, they weren’t really using the account correctly, and because they are so high volume, they regularly exceeded MailChimp’s API capabilities and could not connect their e-commerce store. The owner would contact his list around the holidays for sales events, and he would email his local segment whenever there were special events.</p.But there was no strategy, no schedule, and no automations. To make it worse, because the integration with Magento never worked (their e-commerce platform), they couldn’t track sales from those one-off campaigns or have any idea of what, or anything, was working.

Magento abandoned cart

To their credit, they were using the built-in Magento abandoned cart functionality. They stuck to a pretty generic template, repeating the same email for 3 days after the platform detected an abandoned cart. This abandoned cart still managed to recover $4,800 per month over a 44 month period, with an abandoned cart recovery rate of 1% over that same period. So, those are the benchmarks Low Gravity Solutions needs to beat.

Magento Abandoned Cart

Email Marketing with Low Gravity Solutions

Using Klaviyo abandoned cart sequences

Before we could get to the abandoned cart sequences, we first needed to transfer off of MailChimp and get on a more reliable, better-performing e-commerce email platform. That meant transferring his entire MailChimp account over to Klaviyo and integrating it with Magento. As soon as that was done, we immediately started building out the most important e-commerce automation (or Flow as Klaviyo calls it): the abandoned cart series.

 

A/B testing and giving life to the emails

Klaviyo AB Testing

Klaviyo has amazing built-in A/B, split testing capabilities so we wanted to test our strategy against theirs. As I mentioned earlier, they used the same email template for all 3 emails in their sequence. Not only that, but they were quite generic, had no voice or personality, didn’t connect with the clients, and had a very long disclaimer apologizing if they received this email by accident or because of a technical glitch. We recreated these emails exactly in all of the “A” versions.

We went in and created magic with the B-versions by analyzing their customers and creating an ideal customer avatar, stripped the Ben Stein monotone voice, adjusted for today’s financial and pandemic climate, were not apologetic for them receiving the email, and most of all, we removed the 10% coupon for coming back and completing their purchase. “WHAT?! Remove an incentive?!” Yes.

Split-testing results and more refinement

Klaviyo abandoned cart overview

After just 1-week, the results were so conclusive that we were losing money by continuing to test any further. The A-versions were performing so poorly that anyone that was receiving them could have actually converted if they would have received ours instead.

At that point, I also implemented a split in the flow based on the total value of the cart. If talking directly to your ideal customers is good, talking directly to those that are spending a lot vs. those that are spending a little is even better! The mentality of someone buying a $9 pair of drumsticks is different than the mentality of someone buying a $5,000 drum set.

Abandoned Cart Success

Recovering $15,337 in 2 weeks

The first thing we can see is that our abandoned cart sequence has obliterated the control metrics. We needed to recover $4,800 at a rate of 1% in a month.

We’ve already exceeded that by over $10,000 in just 2 weeks and increased the recovery by an additional 7%!

I hesitated to claim the $15,000 as a victory for LGS because sales do not always paint the full picture. However, I realized that the exact same products with the exact same probabilities of being abandoned existed before we started too. It’s not like they were only offering low priced products before we showed up, and then they started offering high-priced products. No. The previous abandoned cart sequence had the same opportunities and the same probabilities of recovering these exact items as well. Therefore, the amount of sales is one of the true metrics (especially when you remember that we tailored our emails and copy specifically for high-valued customers).

Abandoned cart recovery rate increases by 7%

Even though sales are great, the true value of an abandoned cart is the recovery rate. Shopping behaviors can change from month-to-month and greatly depend on income levels, especially in the current global climate. Sales are also affected by traffic. The more traffic you have, the more sales you make, the more money you can claim in your success.

Klaviyo abandoned cart Day 0 and 1

But recovery rate is independent of all that. It is quite literally a simple calculation of the number of people that receive your emails and the ones that end up buying because of it. Whether you have high-priced products or low, high traffic or not, recovery rate only focuses on the effectiveness of your emails.

An average recovery rate is between 3% and 5% depending on several factors. But our current rate after two weeks is an astonishing 8%. I’d even claim it’s better than that because if you look at the first email, they’re recovering over 11%. It’s normal for them to drop with each subsequent email in the sequence in general, but especially if you’re capturing 11% in the first one, no one needs to see the second.

The Rest of The 2-Week Email Marketing

Abandoned Browser

Klaviyo abandoned browser overview

After the abandoned cart series, the abandoned browser series is next in line for most important. These emails go out to people that have looked at products in your online store, but then decided to not do anything else. If your customers’ contact information is in the Klaviyo system, Klaviyo can identify when they’re browsing, what they’re looking at, and then send them emails.

Because they didn’t have this capability before, we have no benchmarks to beat. Any additional sales because of this flow (or any flow hereafter) is 100% additional value being provided by Low Gravity Solutions.

In 2 weeks, that was an additional $3,000 just for “doing nothing.”

You can also see the recovery rates aren’t quite as good as the abandoned cart, but 6% is still well above the industry average. Not to mention, the open rates and click-through rates are ridiculously high. That might not lead to direct sales right now, but it is growing the brand’s reputation for having kickass content and in the background, growing the domain’s trustworthiness (to stay out of people’s SPAM folders).

Purchase follow-up thank you

At the time of these screenshots, this flow had only been activated for about 5 days. Not only that, but we purposely do not try to upsell or cross-sell to the customers at this point. This is just another touch-point to stay top of mind with the customers. If they buy something, great. If they don’t, we have other opportunities coming. Lastly, these flows are not even completely built out yet, but I didn’t want to miss any chances to talk to our customers and wanted to get this implemented quickly.

Repeat Customer Thank You
Repeat Customer Thank You

1-year anniversary from their first purchase

This one is unlikely to be a massive income-generator, but it is a valuable automation to have. We implemented it now because it’s relatively fast and easy to do so. If it only ever makes one sale, that’s one more than before.

Email Marketing Performance Overview

Low Gravity Solutions generated a total of $18,584 in just two weeks. In those 14 days, we contributed 6% of their total 30-day revenue.

These sales and recovery rate numbers are our most important metric when LGS reports back to the client, but they aren’t the only thing that we currently excel at. Here are some more traditional numbers that email marketers are used to seeing:

  • Open rate around 60%
  • Click rate around 28%
  • Spam rate at 0%
  • Unsubscribe rate less than 0.7%

Klaviyo total email performance

Coming Up Next…

We have more standard e-commerce automated emails that we still need to implement. We need to refine almost all of them to be more specific based on products purchased, lifetime value, number of repeat purchases, and a few other key metrics that are collected by Klaviyo. And as soon as we get all of them cranking away as well as these automations above, then we can focus on campaign strategies that will feed these automations even more.

Get Your Systems Setup Before The Holiday Shopping Season

If you’re interested in having Low Gravity Solutions set up your automated email marketing system before the holiday season, time is running out. To put together a great Holiday package for your customers and make sure all the automations are ready for it, now is the time you need to act.

We have limited availability, but if you want results like this, do not wait any longer. Get in touch today!


    Tell me a little bit about your business and
    how we can help you:


    (Don't skip this step! Accuracy is very important.)




    David Sandel, Founder

    David Sandel, Founder

    Low Gravity Solutions

    Low Gravity Solutions is a full service marketing agency specializing in growing your small business and solving your entrepreneurial problems. You don't have time to do everything, so let us do it for you.

    MailChimp Siteground Domain Authentication

    MailChimp Siteground Domain Authentication

    What is MailChimp Domain Authentication and Why Do I Care?

    MailChimp LogoMailChimp Domain Authentication is a trackable piece of embedded code in your MailChimp email header that most humans never see. It tells the internet provider of your MailChimp List subscriber’s internet service provider that you’re a legitimate sender, and not a Nigerian Prince trying to scam you out of millions of dollars. Basically, it helps your MailChimp email campaign or automation arrive in your subscribers’ inboxes and NOT their SPAM folders.

    Let’s look at this way… You create a MailChimp newsletter and send it to all your subscribers. It gets delivered to the outer gates of your contact’s email provider, and they ask for some ID. MailChimp says, “No problem, here’s my authentication.” The contact’s email provider then says, “Cool, the inbox is right this way.” — Without proper identification, the newsletter may or may not end up in the inbox. It could go to SPAM. And if you’re selling something or in the middle of an automation funnel, you definitely want that email going to their inbox.

    What MailChimp Domain Authentication Looks Like to Your Contacts

    Another cool thing that happens when you authenticate your domain is the way it looks in your contacts’ inboxes. Instead of showing something like:

    David Sandel David@LowGravitySolutions.com via blahblah.mailchimp.com

    It will just show

    David Sandel <David@LowGravitySolutions.com>

    like any other normal email you receive from your friends and family.

    MailChimp Instructions for Domain Authentication

    MailChimp does an excellent job of explaining how to authenticate your domain, and it’s incredibly easy. Just follow these simple steps to find them:

    1. Sign-in to your MailChimp account, and then choose “Account” from the drop-down menu next to your name in the upper-righthand corner of the screen.

    2. Click on the “Settings” tab and choose “Verified Domains.”

    3. Click on “View Setup Instructions” for the domain you would like to authenticate.

    4. You should now be able to see the instructions.

    MailChimp Authentication with Siteground Web Hosting

    The reason I wrote this post is that I already had instructions available for Bluehost users, but I wanted to make sure I didn’t leave out Siteground, another massively popular hosting service. The steps are pretty simple and straightforward for every provider, but each provider may also require that you enter them differently.

    Web Hosting

    1. Login to your Siteground cpanel. Loof for the “Domains” section in the middle of the page, and click the link for the Advanced DNS Zone Editor.

    2. On the next screen, click the dropdown box and select the domain you want to authenticate with MailChimp. (If you only have one domain, this may already be selected for you.)

    3. Create the TXT record per the MailChimp instructions. Enter ‘yourdomain.com’ as the Host Record just like MailChimp says.

    4. Create the CNAME record exactly per the MailChimp instructions. 

    Verifying the MailChimp Authentication Worked

    Siteground and Mailchimp claim that changes in the DNS records may take 24-48 hours to propagate through the internet. In reality, I’ve had this process work as fast as immediately and as slow as 48 hours. The chance that you go back to MailChimp immediately and everything works is low, but not impossible. So if it doesn’t work right away, just try to be patient and check back whenever you have time.

    The steps to verify your authentication are basically the same as above in the MailChimp section. Navigate to the “Verified Domains” screen, click on “View Setup Instructions,” but this time, you’ll click on “Authenticate Domain” when the instructions pop up.

     

    Goodbye SPAM Folder; Hello Inbox

    At this point your domain should be authenticated and in good standing with any SPAM databases (provided you didn’t kill your score prior to this already). However, it doesn’t automatically mean that if your emails were already being delivered to someone’s SPAM folder, that they will now be going to their inbox. If that’s happening, you’re not likely to know about it, and you just have to hope they check someday and add you to their safe sender’s list.

    This is also not the only thing you should be doing to avoid your campaigns ending up in someone’s SPAM. Believe it or not, the words you use, subject lines, pictures, how you use links, and how often other people have marked you as SPAM or reported abuse also affects it. It’s kind of like a running score of how trustworthy you are, so make sure you’re following all the email marketing best practices. If you suspect your MailChimp campaign emails are already going to everyone’s SPAM and don’t know how to fix it, let’s get in touch and see if we can get you out of email prison. I’m an official MailChimp Expert, and I’d love to help you out.

    David Sandel

    David Sandel

    Low Gravity Solutions

    Low Gravity Solutions is a full service marketing agency specializing in growing your small business and solving your entrepreneurial problems. You don’t have time to do everything, so let us do it for you.


      Tell me a little bit about your business and
      how we can help you:


      (Don't skip this step! Accuracy is very important.)




      **Disclaimer: This page contains affiliate links. If you buy something after clicking one, I will receive a very small percentage of the purchase price, but it costs exactly the same to you.
      MailChimp Domain Authentication with Bluehost Web Hosting

      MailChimp Domain Authentication with Bluehost Web Hosting

      What is MailChimp Domain Authentication and Why Do I Care?

      MailChimp LogoMailChimp Domain Authentication is a trackable piece of embedded code in your MailChimp email header that most humans never see. It tells the internet provider of your MailChimp List subscriber’s internet service provider that you’re a legitimate sender, and not a Nigerian Prince trying to scam you out of millions of dollars. Basically, it helps your MailChimp email campaign or automation arrive in your subscribers’ inboxes and NOT their SPAM folders. Let’s look at this way… You create a MailChimp newsletter and send it to all your subscribers. It gets delivered to the outer gates of your contact’s email provider, and they ask for some ID. MailChimp says, “No problem, here’s my authentication.” The contact’s email provider then says, “Cool, the inbox is right this way.” — Without proper identification, the newsletter may or may not end up in the inbox. It could go to SPAM. And if you’re selling something or in the middle of an automation funnel, you definitely want that email going to their inbox.

      What MailChimp Domain Authentication Looks Like to Your Contacts

      Another cool thing that happens when you authenticate your domain is the way it looks in your contacts’ inboxes. Instead of showing something like:

      David Sandel David@LowGravitySolutions.com via blahblah.mailchimp.com

      It will just show

      David Sandel <David@LowGravitySolutions.com>

      like any other normal email you receive from your friends and family.

      MailChimp Instructions for Domain Authentication

      MailChimp does an excellent job of explaining how to authenticate your domain, and it’s incredibly easy. Just follow these simple steps to find them:

      1. Sign-in to your MailChimp account, and then choose “Account” from the drop-down menu next to your name in the upper-righthand corner of the screen.

      2. Click on the “Settings” tab and choose “Verified Domains.”

      3. Click on “View Setup Instructions” for the domain you would like to authenticate.

      4. You should now be able to see the instructions.

      MailChimp Authentication with Bluehost Web Hosting

      The reason I wrote this post is that there are a few tricks that I had to learn the hard way when dealing with Bluehost. Nevertheless, the steps are pretty simple and straightforward.

      1. Login to your Bluehost cpanel. Down the page on the left or in the “domains” section in the middle of the page, will be a link for your DNS Zone Editor. Click it.

      2. On the next screen, click the dropdown box and select the domain you want to authenticate with MailChimp.

      3. Create the TXT record per the MailChimp instructions; however, DO NOT use ‘yourdomain.com’ as the Host Record like MailChimp says. You must use the @ symbol as the Host Record like I show in the picture below.

      4. Create the CNAME record per the MailChimp instructions. You’ll notice that after you click “add record,” yourdomain.com might disappear from the host record field and end up looking like k1._domainkey. That’s fine and MailChimp will be able to authenticate you anyway.

      Verifying the MailChimp Authentication Worked

      Bluehost claims that changes in the DNS records should take effect within 4 hours of the updates, and MailChimp says to allow 24-48 hours. In reality, I’ve had this process work as fast as immediately and as slow as 48 hours has passed and now I have to ask Bluehost to re-push the changes out the door to the rest of the world again. The chance that you go back to MailChimp immediately and everything works is low, but not impossible. So if it doesn’t work right away, just try to be patient and check back whenever you have time. The steps are basically the same as above in the MailChimp section. Navigate to the “Verified Domains” screen, click on “View Setup Instructions,” but this time, you’ll click on “Authenticate Domain” when the instructions pop up.

       

      Goodbye SPAM Folder; Hello Inbox

      At this point your domain should be authenticated and in good standing with any SPAM databases. However, it doesn’t automatically mean that if your emails were already being delivered to someone’s SPAM folder that they will now be going to their inbox. If that’s happening, you’re not likely to know about it, and you just have to hope they check someday and add you to their safe sender’s list. This is also not the only thing you should be doing to avoid your campaigns ending up in someone’s SPAM. Believe it or not, the words you use, subject lines, pictures, how you use links, and how often other people have marked you as SPAM or reported abuse also affects it. It’s kind of like a running score of how trustworthy you are, so make sure you’re following all the email marketing best practices. If you suspect your MailChimp campaign emails are already going to everyone’s SPAM and don’t know how to fix it, let’s get in touch and see if we can get you out of email prison. I’m an official MailChimp Expert, and I’d love to help you out.

      David Sandel

      David Sandel

      Low Gravity Solutions

      Low Gravity Solutions is a full service marketing agency specializing in growing your small business and solving your entrepreneurial problems. You don’t have time to do everything, so let us do it for you.


        Tell me a little bit about your business and
        how we can help you:


        (Don't skip this step! Accuracy is very important.)




        **Disclaimer: This page contains affiliate links. If you buy something after clicking one, I will receive a very small percentage of the purchase price, but it costs exactly the same to you.